REMSONS INDUSTRIES LIMITED
ANNUAL REPORT 2007-2008
Ladies & Gentlemen,
I welcome you all to this 36th Annual General Meeting of your Company.
India's current economy is passing through a very difficult period. Gross
Domestic Product (GDP) for 2008-09 is expected to remain below 8%.
Government is finding it difficult to check the high rate of inflation.
Crude Prices are still very high. The barometer of capital market BSE
SENSEX, which one time crossed 20000 has now come down to 13,000. With
Foreign Institutional Investors (FII) continuously withdrawing their funds
from Capital Market, the Country's Foreign Exchange Reserves have witnessed
a steep decline. Though, Indian companies are doing reasonably well, the
financial crisis at US will have an adverse impact on the Indian Economy.
Industry outlook and Company's performance:
The Directors' Report and Audited Accounts for the year ended 31st March
2008 are in your hands for quite some time and with your permission I
propose to take them as read.
The Automobile industry has become very much competitive and the Companies
are frequently launching their new products and upgrading technologies in
order to increase or maintain their market share. Performance of the Auto
component industry is also badly affected owing to the steep rise in the
steel and other raw material price coupled with the difficulty in passing
over this burden to their customers. Your Company is also not an exception
to this, though its performance was better than last year.
While, Sales and other income (Net) were marginally higher at Rs.5,696 lacs
as against Rs. 5380 lacs in the previous year, the Net loss was reduced to
Rs. 116 lacs only as compared to Rs. 411 lacs in the previous year.
In view of loss, Board of Directors has not recommended dividend.
Company's restructuring plans have started yielding results. By
centralizing operations mainly at Gurgaon and Daman, the Company has been
able to control the administrative cost. Closure of loss making units
followed by the disposal of the fixed assets shall have a positive impact
on working capital with reduction in interest outgo.
Current year's working:
As you all are aware, the Company has reported a net profit of Rs. 13.29
lacs for the quarter ended June 30, 2008, as against a net loss of Rs.30.77
lacs for the corresponding quarter of the last year. I expect the Company
to perform reasonably better in the current year.
The Company is doing well in the Global Market too. With sufficient export
orders in hand, the Company expects to maintain its export sales at Rs. 12
Crores in current year. Moreover, any depreciation in the value of rupee in
terms of Euro shall have a positive impact on its export realizations.
Orscheln Remsons Technologies Private Limited, the Joint Venture Company
with M/s Orscheln Products L.L.C. has commenced its trial production and
the commercial production is expected to start from next month. The Company
has hired technical and skilled staff and appointments at senior levels are
also being made.
Before I conclude, I must mention here that `Remsons' started its operation
way back in 1959 as a small Partnership firm and in all these 50 years of
span, it has never compromised with qualities of its products. The
confidence poised in its products by the major automobile companies is a
matter of great satisfaction and I assure all of you that very soon
`Remsons' shall come back to its glorious and golden days.
I am thankful to the State Bank of India for providing timely financial
assistance to the Company. I welcome `Orscheln' Management, who opted to
join hands with us. My sincere gratitude to my employees at all levels and
to all the shareholders for the confidence poised on the management. I am
also thankful to my colleagues on the Board for their valuable guidance at